The Government has just issued a Decision to reduce 30% of the first vehicle registration and license plate issuance fees.

People come to do procedures at the Traffic Police Department ( Hai Phong City Police).

The Government has just issued Decision No. 1891/QD-TTg approving a plan to reduce and simplify administrative procedures related to production and business activities under the management of the Ministry of Public Security in 2025. Notably, there is a 30% reduction in fees for first-time vehicle registration and license plate issuance on the public service portal.

30% discount on first-time vehicle registration and license plate fees

According to Decision No. 1891/QD-TTg issued on September 3, 2025, approving the plan to reduce and simplify administrative procedures related to production and business activities under the management of the Ministry of Public Security in 2025 and effective on the same day, people who carry out vehicle registration and license plate issuance procedures for the first time using partial or direct public services will receive a 30% reduction in fees and charges compared to the current level. At the same time, vehicle registration results are integrated on VNeID, contributing to cost savings, simplifying procedures and creating momentum for the market.

Accordingly, the applicable fee is divided into 3 regions: Region I is Hanoi and Ho Chi Minh City - where the fee is the highest in the country; Region II is centrally-run cities (except Hanoi and Ho Chi Minh City) and provincial cities; Region III is the remaining localities, mainly rural, mountainous and island areas - with the lowest fee.

In region I, the absolute reduction is quite large: motorbikes with a value of between 15 and 40 million VND will be reduced from 2 million to 1.4 million VND; motorbikes over 40 million VND will be reduced from 4 million to 2.8 million VND; cars under 9 seats will be reduced from 20 million to 14 million VND. For other types of cars, the fee will be reduced from 500 thousand to 350 thousand VND. In regions II and III, the initial fee is lower so the absolute reduction is smaller, but the 30% reduction rate is still applied uniformly throughout the country.

In particular, the Decision also adds a regulation that vehicle registration results are integrated directly into the personal electronic identification application VNeID. Thanks to that, people can look up vehicle information right on their phones, instead of having to carry hard copies of documents, and at the same time help authorities more conveniently authenticate and manage. This is an important step towards digital government and digital citizens.

According to car and motorbike experts, the fee reduction is an immediate benefit, but the long-term significance lies in the digitization of vehicle registration results. When data is integrated into VNeID, people not only save time and costs but also have access to a transparent and modern electronic public service ecosystem. Thus, the policy brings "double benefits": reducing financial costs, simplifying procedures, creating convenience for people and improving the efficiency of state management.

Support market psychology

Decision 1891/QD-TTg was issued in the context of the automobile and motorbike market facing many difficulties in recent months. In the most recent month, the Vietnam Automobile Manufacturers Association (VAMA) said that sales in August 2025 of its members reached 25,973 vehicles, down 18% compared to the previous month.

Besides the seasonal factor, another important reason is the Government's Directive No. 20/CT-TTg on gradually restricting vehicles using fossil fuels issued from July 2025. This policy aims to promote the transition to green, environmentally friendly vehicles from January 2028, limiting private cars running on gasoline and diesel in Ring Roads 1 and 2 and then expanding further. Therefore, in the short term, Directive No. 20 has caused many customers to consider and delay the decision to buy gasoline and diesel cars, leading to a decrease in purchasing power.

Industry experts say that reducing vehicle registration fees by 30% is a timely measure. For cars, the savings of 6 million VND, although not a breakthrough, can become an important psychological support factor. For motorbikes, a reduction of several hundred thousand to more than 1 million VND has a direct impact, because this is a popular means of transport for the majority of people. This policy also has a spillover effect on transport and service businesses, when the cost of expanding the vehicle fleet is reduced. At the same time, digitizing vehicle registration data will also support tax and insurance management and traffic violation handling, contributing to improving the efficiency of state management.

In the long term, Decision 1891/QD-TTg combined with Directive 20/CT-TTg of the Government on restricting vehicles using fossil fuels are considered two complementary pieces, on the one hand supporting short-term consumption, on the other hand promoting sustainable development orientation. This policy not only helps the car and motorbike market "warm up" again after a period of stagnation, but also creates a foundation for the shift to environmentally friendly vehicles, in line with international trends.

Overall, Decision 1891/QD-TTg is not simply a financial solution, but also demonstrates the Government's determination to reduce cost burdens, reform administrative procedures, promote digital transformation and orientate green consumption. In the context of declining purchasing power, this is expected to be a timely "stimulus" and at the same time create a stepping stone for the development of a sustainable car market in Vietnam.

PV (synthesis)

Source: https://baohaiphong.vn/chinh-phu-vua-ban-hanh-quyet-dinh-giam-30-phi-dang-ky-cap-bien-so-xe-lan-dau-522076.html